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NCIUA and the North Carolina FAIR Plan

Checked against official sources · Last reviewed October 13, 2026

What NCIUA and the FAIR Plan are

This page is an independent guide. It is not run by NCIUA or NCJUA and is not affiliated with them. For your own policy, use the official website or call (800) 662-7048.

North Carolina has two last-resort property insurance associations. A FAIR plan ("Fair Access to Insurance Requirements") is a market of last resort for people who cannot get coverage from regular insurers. Both North Carolina associations were created by the General Assembly in 1969. Both are associations of insurance companies, are "not a facility of North Carolina State Government," and have plans of operation reviewed and approved by the Commissioner of Insurance.

The beach area is the land south and east of the inland waterway from the South Carolina line to Beaufort Inlet, and south and east of Core, Pamlico, Roanoke and Currituck sounds to the Virginia line, "being those portions of land generally known as the Outer Banks."

The coastal area is the rest of these 18 counties: Beaufort, Brunswick, Camden, Carteret, Chowan, Craven, Currituck, Dare, Hyde, Jones, New Hanover, Onslow, Pamlico, Pasquotank, Pender, Perquimans, Tyrrell and Washington.

State law says the General Assembly intends both plans to be "not the first market of choice, but the market of last resort." [2][3][8][9][14]

Who is eligible

Do you have to be turned down first? The plans' websites and rule manuals don't list a written rejection among the application requirements. Both say it is "highly recommended that property owners attempt to obtain insurance in the standard market," and that your agent can place coverage in either the regular market or the plan. The manuals describe the plans as serving owners "who have been unable to obtain coverage in the voluntary market." Confirm with your agent or the plan.

Coastal Pool (NCIUA) basics:

- Anyone with an insurable interest in property at a fixed location in the beach or coastal area may apply. People convicted of, or under indictment for, arson or insurance fraud are ineligible. - The property must be in insurable condition and meet the Pool's underwriting standards. The law says a risk is not to be judged on its neighborhood, area or location. - Homes vacant or unoccupied for more than 60 days are generally not eligible, with exceptions such as an estate sale, a home under contract, or a renovation with a schedule. - The Pool generally declines a home with unrepaired damage that is not being repaired. - Windstorm-and-hail-only policies require an active primary policy from a licensed (admitted) insurer in North Carolina that excludes windstorm. If the primary policy lapses, the wind policy can be cancelled.

Extra rules for an NCIUA homeowners policy:

- The home must be owner-occupied "for 75% of the year or nine (9) months." - Forms HO 00 02 and HO 00 03: the home must be 30 years old or newer. Homes over 30 and up to 60 years need proof that electrical, heating, plumbing and roofing were updated within the last 30 years. - The home should have at least 100-amp electrical service "with no aluminum or knob and tube wiring exposure," and a thermostatically controlled central heating system. - Liability rules: in-ground pools need a fence at least 4 feet high with a self-latching gate; diving boards, slides, owned trampolines and ATVs, and day care are not permitted; certain dog breeds and any animal with a bite history are not eligible. - Since Oct. 10, 2025, new homeowners and homeowners-wind applications must give the roof's age and type.

FAIR Plan (NCJUA): any person with an insurable interest in property anywhere in North Carolina except the beach area may apply, subject to similar condition and occupancy standards. [3][8][10][15][16]

What it covers and the limits

Coastal Pool homeowners policies (forms HO 00 02, HO 00 03, HO 00 04, HO 00 06 and HO 00 08) are full homeowners packages with liability coverage. Limits on the most common forms (HO 00 02 and HO 00 03):

You must insure the home to at least 80% of replacement value on HO 00 02 and 90% on HO 00 03.

Windstorm-and-hail-only policies must match your primary policy "as closely as possible" in dates, limits and form. If your primary policy pays replacement cost, the wind policy can too.

Dwelling fire policies (both plans) cover windstorm plus fire, lightning, and vandalism and malicious mischief. The building can be written at replacement cost or actual cash value. Personal property (contents) is covered only at actual cash value, meaning depreciated value. NCDOI explains that a homeowners policy combines property and liability coverage, while a dwelling policy "provides limited property coverage."

Limits: the maximum residential building limit is $1,000,000 in both plans, with personal property capped at 40% of the building limit. The FAIR Plan raised its residential maximum to $1,000,000 effective Dec. 31, 2023. If your home is worth more, you must buy excess coverage up to the property's full value before the plan will provide the primary coverage.

Deductibles: NCIUA residential policies have a minimum of $500 for all other perils with a 1% named storm deductible, meaning 1% of your insured value for wind and hail damage from a named storm. State law requires the Pool to offer a 1% named storm deductible on all policies and not go lower. The FAIR Plan uses the same minimum in the coastal area and $500 elsewhere. Our hurricane deductible guide explains how percentage deductibles work.

Wind-driven rain is covered only on certain forms and endorsements, and never for personal property.

Not covered: flood. "Flood damage is not covered under NCJUA/NCIUA policies." For flood insurance, see our sister site FloodHawk. [3][4][10][15][17][18][19]

How to apply

Apply through a licensed North Carolina insurance agent (the plans call agents "producers"). NCIUA does not have its own agents, and NCJUA-NCIUA "does not recommend specific Agents." Applications for wind-only coverage "must be submitted by a Producer (Agent) selected by the Policyholder." State law also lets you apply yourself or have an authorized agent apply for you.

What to expect:

- Photos: color photos of the front and back of every building to be insured. NCIUA cancels a policy if the photos aren't provided within 30 days. - Signature: the named insured must sign the application. - Binding: an agent of a member insurance company can bind temporary coverage once your estimated premium is collected. - Inspection: the plan may inspect the property. If an inspection can't be completed on an active policy, it mails a 30-day notice of cancellation. - Storm freeze: no new or increased coverage is bound after 12:01 a.m. on the day after a named storm's center enters the area between 60 and 90 degrees west longitude and 11.5 and 37 degrees north latitude.

Applications, forms and the full rule manuals are on the plans' underwriting page. [10][11][20][21]

Paying, policy changes and claims

Log in or pay: the Consumer Service Portal lets you file a claim, make payments, and see policy and billing information. To create an account, you need an email address on file with the associations; for registration trouble call (866) 306-0693. You can also pay by check or money order, through your bank's online bill pay, or by phone through the main number.

Policy changes (address, names on the policy, coverage) go through your agent, who sends them to the plan.

Claims: contact your agent first; their contact information is on your declarations page. If you can't reach your agent, file a claim online or call (800) 662-7048. You'll need your policy number and the ZIP code of your mailing address.

Wind-only policies after a named storm: NCIUA's FAQ says that if NCIUA covers only wind and hail and a member insurance company writes your primary policy, that member company handles the named-storm claim, as state law (G.S. 58-45-35(e)) requires for catastrophic losses; NCJUA/NCIUA handle all other claims. NCDOI's consumer page describes it more broadly, saying your primary insurer will investigate and adjust a wind or hail claim even if you have a separate NCIUA wind policy, so ask your agent who will adjust yours. [1][4][10][11][16][20][22]

Rates and recent changes

How rates are set. By law, NCIUA's rates are the N.C. Rate Bureau's manual rates plus a surcharge: 5% for wind and hail coverage and 15% for homeowners insurance including wind and hail. The legislature says the surcharges are meant to keep the Pool "the market of last resort over and above the manual rate."

Homeowners rate changes. On Jan. 17, 2025, the Commissioner approved statewide homeowners increases for 2025 and 2026, and NCIUA adopted the 2025 changes effective June 1, 2025. NCIUA's averages for a home with $250,000 of Coverage A:

Other recent changes:

- Feb. 1, 2025: Supplemental Loss Assessment coverage was eliminated for dwelling, dwelling wind, homeowners and homeowners wind policies. - 2025: commercial rate and deductible changes took effect Aug. 1 and Nov. 1, 2025. - Oct. 10, 2025: roof age and roof type became required for new homeowners and homeowners-wind business. - July 2025: the plans began mailing letters reminding policyholders of their Coverage A limit, because "home values and construction costs have increased significantly." [16][18][23][24]

Discounts for a FORTIFIED roof or home

State law requires NCIUA to keep a schedule of credits for mitigation and construction features. The credits apply only in the 18 coastal counties, need the required documents before they start, and take effect on the date you provide them. For IBHS FORTIFIED credits, the plans accept only a completed IBHS certificate. FORTIFIED is a roofing and construction standard set by the Insurance Institute for Business & Home Safety (IBHS); see our FORTIFIED roof guide.

Sample NCIUA homeowners credits for frame homes, effective June 1, 2026 (percent off the Coverage A rate):

Full tables for frame and masonry homes, dwelling policies and all six territories are on the underwriting page under "Mitigation Credits."

Stronger Roof Endorsement: in a July 2025 announcement, NCDOI said NCIUA offers this endorsement "at no cost to all policyholders." It provides up to $5,000 in additional coverage for a FORTIFIED roof upgrade when your roof is replaced after a covered claim. [18][21][25][26][27][28][29]

NCIUA roof grants (Strengthen Your Roof)

NCIUA runs two grant programs that pay toward an IBHS FORTIFIED Roof for its own policyholders:

How it works:

- Apply on the program website with at least four photos of the home, one of each side. - NCIUA checks initial eligibility, then IBHS confirms the home can get a FORTIFIED Roof. - Finish the roof and get the IBHS FORTIFIED Roof designation within 18 months of approval. - Grants are first come, first served until funds run out, and are meant for owners who choose to replace their roof, not for roofs damaged in an insured loss. - Since Nov. 1, 2025, only IBHS Certified FORTIFIED Roofing Contractors can do the work. - NCIUA says grant money is "currently considered taxable income."

Status: on Oct. 13, 2026, both program sites were inviting eligible policyholders to check eligibility and start an application. Funding is limited, so confirm with the program before you sign a roofing contract. Each program was funded with $20 million in 2025, according to NCIUA's chief executive at an NCDOI announcement. NCDOI's announcement says NCIUA has helped more than 18,000 policyholders get a FORTIFIED Roof since adopting the standard in 2016.

Sources differ on the top grant: NCIUA's own Strengthen Your Roof site says up to $10,000, while IBHS's North Carolina incentives page still says up to $8,000. Go by the NCIUA program site. [6][7][28][29][30][31][32][33]

Getting back to the regular market

NCIUA runs a Take Out Program: each year it offers member insurance companies the chance to pick up Pool policies and place them in the regular (voluntary) market. A company that wants to take a policy must contact your agent and notify NCIUA 60 days before the policy expires. Your agent of record makes the final placement decision.

If you cancel a wind-only policy yourself, NCIUA normally keeps a 25% minimum earned premium. That minimum does not apply when the property is sold, there is a total loss, the coverage is placed in the voluntary market, or NCIUA cancels the policy because it doesn't meet eligibility guidelines. [10]

If NCIUA or the FAIR Plan turns you down or cancels

A notice of cancellation from the plan must state the reasons and explain your right to appeal. If an application is declined or accepted only on condition of repairs, the plan will, on request, send you the inspection report and the corrections needed.

Appeal steps:

1. The plan's board or Appeals Committee. Tell the association in writing that you intend to appeal within 15 days after you're notified of its decision. Appeals about the cause or amount of a claim are not handled this way. 2. The Commissioner of Insurance. State law (G.S. 58-45-50 for NCIUA, G.S. 58-46-30 for the FAIR Plan) allows an appeal to the Commissioner within 30 days after the ruling. This is a formal hearing with a court reporter. 3. Wake County Superior Court, under G.S. 58-2-75.

Read the plans' appeal procedure. [10][15][34][35][36]

How big NCIUA is and who pays if it runs short

As of June 30, 2026, NCIUA reported:

• 276,275 insured risks, with about $169.3 billion of total liability.
• $1.91 billion in surplus.

The FAIR Plan reported 318,455 insured risks and about $73.6 billion of liability on the same date. In 2024, NCIUA wrote $736.4 million in direct premiums.

If NCIUA's losses exceed its surplus, reinsurance and other funding, it can levy a non-recoupable assessment of up to $1 billion per calendar year on its member insurance companies. If members have paid that $1 billion and losses still exceed what NCIUA can pay (a "deficit event"), state law lets NCIUA, once the Commissioner verifies the losses, have insurers add a catastrophe recovery charge to residential and commercial property policies statewide, including FAIR Plan and NCIUA policies. The charge can't exceed 10% of a policy's annual premium. NCIUA reported no assessments in 2023 or 2024. [8][12][13][37][38]

Help

- NCIUA and NCJUA: (800) 662-7048 or (919) 821-1299; mailing address PO Box 8009, Cary, NC 27512. - Roof grants: 844-627-6637 (Outer Banks) or 877-472-6862 (coastal counties). - North Carolina Department of Insurance consumer line: 855-408-1212, or file a complaint online.

More on the state's rules: Homeowners Insurance in North Carolina. [5][6][7][39]

Questions people ask